Wheat prices have had a fairly significant correction of about a dollar but technical indicators are now getting into the oversold range. This is no place to be making sales. We would not be surprised to see wheat getting back into that consolidation area between $6.80 and $7.20 at some point as we move through May and into June.
Prices posted a high of $7.34. We closed today at $6.47 so down about 85 cents from the contract highs. You’ll also note, we are not challenging the highs in the mid to upper $9 range and that’s because wheat supplies are more plentiful than corn or beans. Wheat supplies are shrinking in the U.S. and if corn and beans rally, wheat will have no problem following along and challenging its previous high at some point if the corn and bean markets can see a summer rally.